Dow index could slip to 9700 in medium term: Philip Roth

Philip Roth, Chief Technical Analyst, Miller Tabak in an interview to CNBC-TV18 said, the selling seen post US debt downgrade by S&P seems to be winding up. However, he doesn't feel that it is end of medium-term correction.

But, he expects sustainable recovery and a temporary rebound to occur with less volume and less volatility. That, according to him, would set the stage for a temporary recovery. Citing his reading for the Dow index he said, "There is short-term support at around 10,600 -10,800 level. That was yesterday's intraday low and it will hold for the short run. For the medium-term it may not hold. But, one could see it as low as 9,700 -10,000 level in the medium-term." Also read: Recovery to continue till global cues hold says Raamdeo Agrawal Below is the edited transcript of his interview with Mitali Mukherjee and Udayan Mukherjee of CNBC-TV18. Also watch the accompanying video. Q: What do you see when you look at the charts of the US markets because the fear is there is some kind of breakdown underway? A: The real issue for the US markets started in the second quarter of 2011 when people were ignoring lots of bad news. The media made it sound like the negative was, 'the US had its debt downgraded by S&P'. But, that is a symptom of the problem, not the start of the problem. So, we saw a lot of selling after that event. We have had a selling climax, being a high volume, high volatility decline. It looks like its winding up and it should set us up for some temporary recovery. I don